Russia's
Failing Economy Results In The Sale Of Its 2nd Largest
Airline

August 31, 2015 - Due to U.S. and other western countries sanctions
imposed on Russia
for its involvement in
Ukraine's civil war,
Russia's
economy has fallen to the degree that it is in a
full blown recession and many economist believe
that the Russian economy is in even worse shape
that what it appears.

With the drop in recent oil prices and with the
prospect that the Obama administration will get
the support they need from congress to approve
the Iran
deal will allow
Iran
to sell its oil further hurting the Russian
ruble.

As a result of the Russian economy, air
passenger travel has fallen dramatically.
Transaero Airlines, Russia's second largest airline has in counted
debt of over $100 million (U.S.)
due to loss of passenger travel and paying on
loans in which the company borrowed money to
expand its fleet.

Russia's
largest passenger airline, Aeroflot PJSC agreed
to takeover the failing Transaero Airlines. In a
statement Transaero Airlines said, “In an
economic situation that has been fairly
described as a perfect storm, Transaero Airlines
no doubt is experiencing difficulties”.

With
China
recently finding oil, up to 20.5 billion tons it
will further erode the Russian economy. With the
recent find by
China
it will reduce
China's
consumption on the world markets resulting in
reduced oil prices around the world. Which does
not surprise me why our congress is against the
Iranian deal. Its always about oil.

First Deputy Prime Minister Igor Shuvalov said,
that Russia backed consolidation and that
Aeroflot will purchase 75 percent share of
Transaero which began service in 1991. The
company operates scheduled and charter flights
to 103 domestic and international destinations
with its main hubs in Moscow
and
Saint Petersburg.
Transaero was the first airline to receive a
western-made aircraft, it was the Boeing 737.